Attn: Broker Owners, You already own an Insurance business, you just aren't getting paid for it yet.
As margins in real estate brokerages shrink, how many brokers are looking to grow their core services? Core services are those like Title, Escrow, Insurance etc....
Over the past 40 years margins have consistently shrunk due to many factors, more competition, lower commissions, higher splits, higher expenses, technology, the list goes on and on.
I literally talk with broker owners every day and one thing I consistently hear about is that margins are not going up. Many brokers are looking to add additional core services to their offering to increase profitability and provide a one stop shop.
Last week I talked with a broker owner that owns Real Estate, Mortgage, Title and has now added Homeowners Insurance to the mix because of the residual aspect.
Most core services are transactional in nature. Homeowners insurance is rare as it is residual AND sticky.
Think about it, when is the last time that you shopped for a better rate on your homeowners insurance? I find there are 2 types of people, the type of person that shops for a better rate on homeowners insurance and the 90% of us that don't.
What also makes it sticky is that a lot of homeowners insurance is escrowed right? So we see it go up incrementally each year but we see the monthly increase as being only a smaller amount each month so it is no big deal.
From a business owner's perspective this is great news. Because most homeowners are required to keep homeowners insurance for as long as they have the mortgage in place (it is required by lender of course) it makes it very sticky.
Owning a homeowners insurance franchise is a slow burn. We are talking hundreds of dollars in commissions not thousands, but the Compound Effect factors in, a little bit added each year adds up over time. It's kind of like gaining weight....
Plus you need to factor in the seamless integration into your business, especially when you consider a turnkey franchise like We Insure (yes, I work for HQ selling Homeowners Insurance Franchises to real estate brokers).
Providing a one stop shop to your clients is an added plus. Think about it, if there were a way to create a residual revenue stream while providing good rates and a one stop shop for your clients, why wouldn't you consider adding homeowners insurance as a core service? Especially if you already have the lead flow?
Margins aren't growing in real estate. You already have the customers. The space requirements are minimal. Low cost to start & low cost to operate. You hire a producing insurance agent and you are off to the races.
You already own a homeowners insurance business, you just aren't getting paid for it yet.
A lot of top real estate brokers are adding more core services to their real estate business. Does it make sense to at least explore the option so you know what it is, how it works, how much does it cost, what can it do for your business & more.
Let's chat sometime. My cell 484-942-6383 or visit www.WeInsureFranchise.com for more information